Swedish ministers foresee trade opportunities in Nigeria

DESPITE the prevailing security challenges, Scandinavian giant, Sweden still sees a myriad of opportunities in Nigeria.
The opportunities, according to visiting Swedish Ministers of Finance and his International Development Cooperation counterpart, Messrs Anders Borg and Gunilla Carlsson, include the opening up of more sectors of the economy as well as what they have termed “Nigeria’s innovative use of mobile services.”
This scenario “paired with Swedish experience and young entrepreneurs in this field may be a recipe for strong partnership,” said Borg and Carlsson who are leading a Swedish ministerial delegation to Nigeria as part of a brief African tour, which would end with the World Economic Forum in Cape Town.
In their mission statement, which emanated from The Guardian’s enquiry, the duo maintained that to an emerging economic power like Sweden, “Nigeria has experienced impressive growth in recent years while the government’s vision of making Nigeria one of the world’s 20 strongest economies by 2020 is within reach. If handled wisely, this growth will improve the living conditions of millions of Nigerians and inspire hope for its young and growing population.”
Trade between Nigeria and Sweden has increased steadily over the past five years, and Nigeria is now the country’s second-largest trading partner in sub-Saharan Africa.
Stressing that “we have common interests in telecom and renewable energy, two sectors with great importance for the future” the ministers noted the “positive developments in Nigeria motivate the renewal and expansion of our bilateral ties in order to capitalise on the new opportunities for cooperation that are now emerging...Our joint trip to Nigeria and other countries in Africa is an expression of the Swedish Government’s desire for stronger political and economic relations with the new Africa.”
Looking at the continental scenario, they insisted that despite the odds, Africa is a continent of opportunities, one of the last emerging investment markets.
“With one billion people living in 54 countries, Africa is facing widely differing opportunities and challenges. Africa is changing and there is renewed optimism about its future. The progress made over the past decade inspires hope for more sustainable and inclusive development, with lasting improvements in living conditions for the continent’s large and growing young population,” they added.
 They continued: “The pace and direction of the transformation taking place on the continent differs between the countries. However, the general trend is clear: A new Africa is now emerging that is increasingly characterised by high economic growth, stronger democratic values, fewer interstate conflicts, sounder macroeconomic policies and increased trade...The growth rate in sub-Saharan Africa has remained at an average of five per cent over the past fifteen years, with the exception of the global financial crisis years of 2008 and 2009.  Over the next five years, Africa’s economy is expected to grow faster than that of any other continent. Increased political and macroeconomic stability and lower levels of conflict in many African countries offer the potential for sustained economic growth.”
They maintained that in recent years, one factor contributing to the strong growth rate has been the development of information and communications technology (ICT), and particularly the explosive growth in mobile telephony in Nigeria.
They said in this regard: “This has made it easier for people to obtain information about everything from health care to agricultural prices. Recent steps by the Nigerian Communications Commission allowing customers to retain their mobile telephone numbers when switching service providers indicates how important it has become to have access to a reliable service, not least since mobile telephones also are the main vehicle for reaching the internet.”
Continuing in the Swedish vision for Africa, the ministers said, “Africa’s future is largely in the hands of its young and growing population. According to UN estimates, Africa’s population will double by 2050, when almost one in five people on Earth will be living on the African continent. Creating education and employment opportunities for this large, young population will be a challenge. If this is not possible, there is a risk that the demographic imbalance will create political and social unrest. At the same time, the potential and the opportunities are enormous. A new self-confidence is evident among African governments and individuals, companies and organisations. This is expressed in various international forums where African influence is increasing in a number of different fields.”
On what must be done to sustain growth and stimulate more foreign investments, they held that even though improvements can be seen in regional trade and integration “more efficiency is required in the shape of improved institutional capacity and infrastructure, with fewer intra-African barriers.
“Despite increased financial flows, Africa is facing a huge investment gap. Lack of investment in infrastructure is one of the main obstacles to Africa’s development. Huge investments will be needed in the coming years, which will require considerable sums of private and public capital”
Specifically, the ministers said Sweden now needs to “explore how governments and international financial institutions can collaborate further to attract more investment to African countries. Macroeconomic stability is a key prerequisite for boosting investment. Many African countries have made significant progress in this regard. Prudent fiscal and monetary policies are now reflected in low debt levels, moderate deficits and manageable inflation. The institutional framework that supports macroeconomic stability could be strengthened further. The business climate is a key driver of economic growth and another area where many African countries have made important advances. It is crucial to keep up the pace of structural reforms that improve the functioning of the economy, in order to further stimulate entrepreneurship and productive investment…Africa’s challenges and opportunities are shared by Sweden and the rest of the world. Africa is part of our own reality. We are engaged in Africa’s future, not only because it is our moral obligation but also because it is in Sweden’s own interest,” they added.